Penrith Property Market Update 2nd Half of 2020

In Q3 2020, Penrith recorded a median house price of $690,000, and a median unit price of $481,500. This represents annual (Q3 2019 – Q3 2020) median price growth of 4.6% for houses of 1.4% for units. Between Q3 2019 – Q3 2020 total sales in both markets slowed, by -10.6% for houses (to 530 sales) and by -24.8% for units (to 218 sales). Lower demand may be a reflection of COVID-19 restrictions, however positive price growth suggests a potential undersupply in the market. With median prices up and currently limited competing stock, now is an ideal to sell your home in Penrith.

Average vendor discounts between Q3 2019 and Q3 2020 have tightened for both property types, to -3.3% for houses and -4.9% for units. Penrith provide unique opportunities. Sellers can achieve a final sale price closer to their first list price, whilst buyers can still benefit from a discount. Now is the time to transact.

In September 2020, house rental yields in Penrith were recorded at 3.2%. In the 12 months to Q3 2020, the median house rental price has remained stable at $450 per week, however average days on the market declined by -38.7% (to 19 days). Overall, Penrith has exhibited resilience in its rental market throughout COVID-19.

4+ bedroom houses have provided investors with +1.9% rental growth annually, with a median rent of $550 per week.

Also in September 2020, Penrith recorded an extremely low vacancy rate of 0.8%, well below Sydney Metro (3.5%). Vacancy rates in Penrith have shown a sharp decline since December 2019 (pre-COVID-19) and March 2020 (peak of COVID-19), remaining well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This confirms there is exceptionally strong rental demand in Penrith and a conducive environment for investors.